(Corrects deadline date for debt ceiling to be raised to Oct.17 from Oct. 15)

By Phil Wahba

NEW YORK, Oct 10 (Reuters) - U.S. shoppers continued to showcaution in their spending in September, gravitating towardbargains, as political strife in Washington and slow job growthhurt their confidence with the start of the holiday season justweeks away.

L Brands Inc on Thursday reported sales at storesopen at least a year rose 1 percent in September, missing WallStreet estimates of a 2 percent gain. The company had softbusiness at its Victoria's Secret chain, where it had to offerdeeper promotions than it had expected.

Over the summer, many shoppers shifted spending to itemslike cars and homes and away from clothes, hurting retailersthat have a heavy presence in malls.

J.C. Penney Co Inc, which this week reported a 4percent drop in comparable sales for September but is not partof the index, said traffic trends were better at its off-mallstores.

Consumer confidence decreased in September on concerns aboutthe short-term outlook for jobs and whether the slightimprovement in the economy could keep its momentum, according tothe U.S. Conference Board.

In September, consumers were also worried about the prospectof a partial U.S. government shutdown, which began on Oct. 1.

U.S. business leaders are concerned about the impact thatthe political deadlock in Washington could have, especially withthe holiday season looming. If the U.S. debt ceiling is notraised by an Oct. 17 deadline, the United States could defaulton some debt.

"If and when there's a default, we will feel that," Macy'sInc Chief Executive Terry Lundgren told journalists at aconference in New York last week.

Last week, Rite Aid Corp reported comparable salesof general merchandise fell 0.5 percent, while at Walgreen Co they rose 2.9 percent. Both chains get the bulk of theirrevenue from drug prescriptions.